The Hydrogen Council and McKinsey recently jointly released the first Global Hydrogen Compass report, showing that the global clean hydrogen industry has entered a new stage of rapid development. At present, more than 500 hydrogen energy projects worldwide have passed the final investment decision (FID) and are in the construction or operation stage, with a total investment commitment of $110 billion, an increase of $35 billion from last year. Since 2020, the industry has shown a strong development momentum with an average annual committed investment growth rate of up to 50%.

The report points out that as the industry gradually matures, the project screening mechanism is constantly being optimized - projects with strong commercial feasibility continue to be promoted, while some early renewable hydrogen projects are being withdrawn. As of now, more than 1700 hydrogen energy projects have been announced globally, a 7.5-fold increase from 2020, of which about 50 have been cancelled in the past 18 months, accounting for 3% of the total project pipeline. Structural challenges such as high interest rates and delayed policy implementation are accelerating the process of survival of the fittest.

From the supply side, the global clean hydrogen commitment annual production capacity has exceeded 6 million tons, of which 1 million tons have been put into operation. It is expected that by 2030, the current project pipeline can support an annual production capacity of 9-14 million tons, but the key to achieving this goal lies in effectively releasing demand. Currently, approximately 3.6 million tons of constrained purchase volume have been secured globally. With the gradual clarification of policies in major markets such as the European Union, the United States, Japan, and South Korea, the annual demand for clean hydrogen is expected to reach 8 million tons by 2030.

From a regional distribution perspective, China leads the world with a committed investment of 33 billion US dollars, and its renewable hydrogen production capacity accounts for over 50% of the global total. North America follows closely behind with $23 billion, contributing 85% of global low-carbon hydrogen production. Europe has committed to investing $19 billion, accounting for nearly two-thirds of the expected global demand by 2030.

The Global Hydrogen Compass integrates industry data, global CEO perspectives, and practical experience from major projects for the first time, demonstrating industry leaders' high confidence in the future of hydrogen energy. 74% of the surveyed CEOs stated that their investment willingness has remained stable or strengthened in the past two years, 97% believe that hydrogen energy is a key path for decarbonization in industries that are difficult to reduce emissions, and 83% expect the industry to continue to grow.

Jaehoon Chang, Vice Chairman of Hyundai Motor Group and Co Chairman of the Hydrogen Council, emphasized that "the industry has entered the substantive construction stage from the target stage. Continuous policy support and efficient implementation are urgently needed to unleash the potential of hydrogen energy and build a clean and resilient energy future

Sanjiv Lamba, CEO of Linde and Co Chair of the Hydrogen Council, stated, "The industry has demonstrated its innovation and scalability capabilities, and the current focus is on accelerating market creation, ensuring binding off take agreements, and truly driving project impact

Ivana Jemelkova, CEO of the Hydrogen Council, stated that the report demonstrates stable growth over the past five years and provides clear guidance and confidence for all parties to enter the next phase of construction. Editor/Xu Shengpeng